In 2019, after numerous requests, SARS approved traders’ recommendation to publish Tariff Determinations (TDNs) and the Budget speech by the Minister of Finance in 2020 included the publication of TDNs to be gazetted. Finally, in April 2023, the Commissioner published draft rules for comment pertaining to the publication of TDNs.
Tariff classification, along with Rules of Origin and Valuation, is the basis of risk management when a declaration is submitted to Customs for validation. The correct tariff classification of goods not only determines the rate of import duty to be paid, but also refers to the requirements in terms of the Prohibited and Restricted Goods Index. When there is uncertainty about the correct classification of a specific commodity, one may apply for a Tariff Determination which, when issued, is a binding ruling.
Until now, TDNs have been issued in the name of the importer and therefore no other importer may use or refer to the ruling. So why do we need TDNs to be published? To avoid duplicate applications by numerous importers for the same commodity, to prevent inconsistent rulings by the SARS Tariff Section, to ensure transparency and, as SARS policy allows for self-assessment, access to TDNs will improve the standard of declarations. Further, due to capacity constraints within SARS, an application may take several months to finalise, and this is a challenge for traders. If importers have access to previous TDNs, the number of applications will be significantly reduced and this, in turn, will assist SARS. It is also important to note that many other countries, as members of the WCO, publish tariff rulings and most clearing agents are well aware of the CROSS rulings system used in the United States.
The publication of TDNs will be rolled out in three phases, the first of which will involve the online capturing of applications and the publishing of the finalised TDNs, and when the system goes live in April 2024, traders will have a search capability. The second phase, scheduled for September 2024, will allow traders to submit TDN applications electronically and the third phase will include the publication of historical TDNs, subject to the sanitising of information which may not be published by law. There is no release date scheduled yet.
